UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS

GCE Advanced Subsidiary Level and GCE Advanced Level

MARK SCHEME for the October/November 2009 question paper

for the guidance of teachers

9706 ACCOUNTING
9706/21 Paper 21 (Structured Questions), maximum raw mark 90

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners’ meeting before marking began,
which would have considered the acceptability of alternative answers.

Mark schemes must be read in conjunction with the question papers and the report on the
examination.

• CIE will not enter into discussions or correspondence in connection with these mark schemes.

CIE is publishing the mark schemes for the October/November 2009 question papers for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level
syllabuses.

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 Page 2 Mark Scheme: Teachers’ version Syllabus Paper
GCE A/AS LEVEL – October/November 2009 9706 21

1 (a) $ $
Bank 5 000
Stock 45 000
Debtors 52 000
Prepayments 3 000
Vehicles 40 000
Fixtures 30 000
Electricity 5 000
Creditors 35 000
175 000 40 000

Total partnership 135 000

Current accounts (net) 15 000
Total of capital accounts 120 000

Capital Rahul 80 000 (2)

Shivam 40 000 (2) [4]

(b) Trading, profit & loss and appropriation accounts for the year ended 31 March 2009.
$ $
Sales (805 000 – 52 000 + 63 000) 816 000 (3)
Less cost of sales
Opening stock 45 000
Purchases (600 000 – 35 000 + 41 000) 606 000 (3)
651 000
Closing stock 48 000 603 000
Gross profit 213 000

Electricity (25 000 – 5 000 + 6 000) 26 000 (3)

Rent & rates (34 000 + 3 000 – 2 000) 35 000 (3)
Insurance 14 500 (1)
General expenses 14 000 (1)
Depreciation vehicles 20 000 (1)
fixtures and fittings 2 000 111 500 (1)
Net profit 101 500 (1 of)
Interest on capital Rahul 8 000
Shivam 4 000 12 000 (1 of)
Salaries Rahul 25 000
Shivam 30 000 55 000 67 000 (1)
34 500
Share of residue Rahul 23 000
Shivam 11 500 34 500 (1 of)
[20]

© UCLES 2009

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Page 3 Mark Scheme: Teachers’ version Syllabus Paper
GCE A/AS LEVEL – October/November 2009 9706 21

(c) Rahul’s current account

$ $
Drawings 25 000 (1) Bal b/d 15 500 (1)
Int on cap 8 000 (1 of)
Salaries 25 000 (1)
Bal c/d 46 500 (1 of) Share of R 23 000 (1 of)
71 500 71 500
Bal b/d 46 500 [6]

[Total: 30]

Closing balance sheet as proof (not for marking)

FA Vehicles 80 000
F&F 28 000
108 000
CA Stock 48 000
Debtors 63 000
Bank 7 500
Prepaid 2 000 120 500

CL Creditors 41 000
Accrued 6 000 47 000
NCA 73 500
181 500
Capital accounts Rahul 80 000
Shivam 40 000 120 000
Current accounts Rahul 46 500
Shivam 15 000 61 500
181 500

© UCLES 2009

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 Page 4 Mark Scheme: Teachers’ version Syllabus Paper
GCE A/AS LEVEL – October/November 2009 9706 21

2 (a) Café trading account for the year ended 30 September 2009
$ $ $ $
Sales 94 320
Cost of sales
Opening stock 9 500
Purchases 43 500
7 900
6 700 1 200 44 700 (2)
54 200
Closing stock 10 500 43 700
50 620
Wages 23 500 (1)
Profit 27 120 (1 of) [4]

(b) Income and expenditure account for the year ended 30 September 2009
$ $
INCOME
Subscriptions – ordinary
(31 200 + 2 200 + 2 600 – 2 400 – 2 800) 30 800 (5)
Subscriptions – life (5 × 2 000)/20 500 (1)
Dinner dance (6 000 – 5 230) 770 (1)
Café profit 27 120
Interest on deposit account 4 500
63 690
Less EXPENDITURE
Greenkeepers’ wages 25 000
Insurance (3 450 + 430 – 550) 3 330 (1)
Depreciation (26 200 + 2 150 – 25 400) 2 950 (1)
Secretary’s honorarium 2 000
General expenses 8 950
Clubhouse repairs 3 540
Clubhouse rates (4 500 – 900 + 950) 4 550 50 320 (1)
Surplus 13 370 [10]

© UCLES 2009

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Page 5 Mark Scheme: Teachers’ version Syllabus Paper
GCE A/AS LEVEL – October/November 2009 9706 21

(c) Balance sheet at 30 September 2009

$ $ $
Fixed assets
Clubhouse 120 000
Furniture and fittings 25 400
145 400 (1)
Current assets
Stock 10 500
Bank current account 10 980
Bank deposit account 110 190 (1)
Cash 530
Prepayment 550
Subs due 2 600 135 350 (1)
Current liabilities
Creditors 7 900
Accrual 950
Subs prepaid 2 400 11 250 (1)
Net current assets 124 100 (1 of)
269 500

Accumulated fund at 1 October 2008 246 630 (6)

Surplus 13 370
Life members’ fund 9 500 (1)
269 500 [12]

(d) Advantages

Show cash position

Easy to record

Disadvantages

Capital and revenue expenditure not separated

Depreciation ignored

Any two sensible advantages and disadvantages acceptable.

Not more than two of each. [4]

[Total: 30]

Accumulated fund at 1/10/08

Clubhouse 120 000 Accruals 900

Stock 9 500 Crs 6 700
Prepaid 430 Subs prepaid 2 200
F&F 26 200
Subs due 2 800
Cash 850
Bank current a/c 12 150
Bank deposit a/c 84 500 Accumulated fund 246 630
256 430 256 430

1 mark for every correct pair

© UCLES 2009

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 Page 6 Mark Scheme: Teachers’ version Syllabus Paper
GCE A/AS LEVEL – October/November 2009 9706 21

3 (a) Number of hours worked Athol 5 000

Brose 3 250 (1)
Crowdie 5 500
Total 13 750 (1) [2]

(120 000 − 108 000)

(b) Contribution per DL hour Athol $2.40 (2)
5 000
(88 000 − 60 500)
Crowdie $5.00 (2) [4]
5 500

(c) Units produced DL hours Units per DL hour

120 000
Athol 40 000 5 000 8 (3)
3
91 000
Brose 13 000 3 250 4 (3)
7
88 000
Crowdie 22 000 5 500 4 (3) [9]
4

(d) Brose’s variable costs are greater than its sales; contribution is negative.
Or similar answer. [1]

(e) Estimated profit statement

Athol Crowdie Total
$ $ $
Sales 180 000 128 000 308 000 (3)

Direct materials 72 000 40 000 112 000 (3)

Direct labour 30 750 32 800 63 550 (3)
Variable overheads 60 000 16 000 76 000 (3)
162 750 88 800 251 550
Fixed costs 22 000 (1)
273 550

Estimated profit $34 450 (1 of) [14]

[Total: 30]

Workings
Athol Crowdie
Units sold 60 000 32 000
RM unit cost 1.20 1.25
Units per hour 8 4
Rate per DL hour 4.10 4.10

Original sales revenue 120 000 88 000

Original V overheads 40 000 11 000

Ratio of Sales rev to var o/heads 3:1 8:1

© UCLES 2009

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